Aug. 17 (Bloomberg) -- U.K. stocks rose for a second day
after a report on American consumer confidence and leading
economic indicators rose more than forecast.

Barclays Plc advanced 3.6 percent, following European
lenders higher, amid continued speculation that the governments
of the euro area will soon agree to disburse the first tranche
of a 100 billion-euro ($123 billion) bailout to Spain’s most
debt-stricken banks.

“Investors seem content to think that the European Central
Bank is readying something fairly impressive with a view to
using it sometime in September,” said Will Hedden, a sales
trader at IG Index in London. “This narrative has swept all
before it so far in August, helped along by the perception that
the Federal Reserve is also tiptoeing closer to more stimulus.”

The Thomson Reuters/University of Michigan preliminary
August index of consumer sentiment increased to 73.6, the
highest level since May, from 72.3 in July. The median forecast
of 72 economists surveyed by Bloomberg had called for a reading
of 72.2. A separate release showed that a measure of leading
economic indicators gained 0.4 percent in July. Economists had
projected the gauge would rise 0.2 percent, according to the
median estimate in a Bloomberg survey.

German Backing

Germany’s Chancellor, Angela Merkel, speaking in Canada
yesterday, backed the European Central Bank’s requirement for
conditions to help reduce borrowing costs in indebted countries.
Merkel said Germany is “in line” with the ECB’s approach to
defend the euro.

Barclays rose 3.6 percent to 192.85 pence, gaining for a
second day. A gauge of bank shares contributed the most to the
Stoxx Europe 600 Index’s advance today. Royal Bank of Scotland
Plc and Lloyds Banking Group Plc gained 1.9 percent to 231.6
pence and 3.7 percent to 34.22 pence, respectively.

Ophir Energy Plc, a U.K gas explorer in Africa, increased 4
percent to 531.5 pence. The stock was raised to buy from neutral
at Goldman Sachs Group Inc.

Lonmin Plc fell 1.3 percent to 639.5 pence, after earlier
dropping as much as 8.6 percent. South African police killed 34
striking workers at Lonmin’s Marikana platinum-mining complex
yesterday, the worst death toll by the police since the end of
apartheid in 1994.

Travis Perkins Plc, the U.K. builders’ merchant that owns
the Wickes home-improvement chain, slipped 0.9 percent to 1,050
pence. The stock was downgraded to neutral from outperform at
Credit Suisse Group AG, meaning that investors should not buy
more of the shares.